The big end of town has piled into a small payments security firm’s initial public offering in the expectation they may have unearthed the next big thing.
Street Talk understands UBS Australia chief executive Matthew Grounds, veteran fund manager David Paradice and Sydney-based institutional investors KIS Capital, Terra Capital and KTM Ventures are among existing and incoming investors in ASX-aspirant Identitii.
It is believed Grounds snaffled his stake in 2015 while Paradice picked up his below-substantial shareholding in a pre-IPO raising.
Identitii is a blockchain software company founded by Australians Nick Armstrong and Eric Knight.
Its software is aimed at helping banks and other international payments providers comply with anti money laundering policies by attaching messages to each transfer saying exactly who is making the payment and why.
Identitii is an add-on to the SWIFT payments network, which is the payments system behind most international transfers, and has bank-to-bank and bank-to-corporate products both aimed at helping customers better know their clients.
It is understood potential backers have been told Identitii already has one of the largest global banks as a customer.
And now it is lining up for an Australian Securities Exchange listing.
It is understood the company is seeking to raise $11 million via brokers KTM Capital and Canaccord Genuity, in a deal valuing Identitii at $41 million on a market capitalisation basis.
The IPO has been pitched to a handful of the brokers’ clients, and has been cornerstoned by three large institutional investors. A prospectus is expected to be lodged with ASIC shortly.
KTM Ventures is an existing investor and the firm is represented by Martin Rogers on on Identitii’s board. Other backers include Grounds, Paradice, KIS Capital and Terra Capital.